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MB 101_Bloomberg Answers - Economic Indicators _ Harvard University
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The Primacy of GDP (30 min.) Knowledge Check 1 How accurately do GDP statistics portray the economy and why? Inaccurately because the scope of GDP measurements can change. Knowledge Check 2 Consider the formula GDP = C + I + (X-M). A country is undergoing a boom in consumption of domestic and foreign luxury goods. In one year, the dollar growth in imports is greater than the dollar growth in domestic consumption. Assuming nothing else has changed, what happened to GDP? It went down.
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